Newcastle United owner Mike Ashley’s sportswear empire has snapped up a near-5 per cent stake in under-pressure department store Debenhams, the company revealed today.

Sports Direct International said the stock market purchase of the 4.6 per cent holding, worth around £46million, would allow the companies to consider ways to work together.

Debenhams, which issued a profits warning on New Year's Eve after poor Christmas trading, said it was open-minded about the offer of exploring operational opportunities in order to improve its performance.

Sporting chance: Mike Ashley's Sports Direct has acquired a 4.6 per cent stake in Debenhams and is considering ways for the companies to work together.

At the end of last year, the company said its half-year pre-tax profits were expected to fall to around £85million from £114.7million the year before, after a dismal 0.1 per cent like-for-like sales increase for the 17 weeks to December 28.

It was the group's second profits warning in less than a year, with poor trading at the start of 2013 seeing profits fall 2.7 per cent to £154million for the 12 months to August 31.

Debenhams finance chief Simon Herrick quit two days after the shock profits warning from the department store group and in the wake of a 'Santa tax' row with suppliers.

There was no reason given for his departure, but Herrick came in for heavy criticism over a letter hitting the retailer's suppliers with demands for discounts days before Christmas, a move that led to him being dubbed ‘Debenezer Scrooge’.

As well as 409 stores in the UK, Sports Direct has a portfolio of 28 internationally recognised sports, fashion and lifestyle brands including Dunlop, Slazenger, Everlast, Lonsdale and Karrimor.

The company, which has purchased 56.8 million shares in Debenhams, has a history of buying strategic stakes in other retailers, most recently JJB Sports. It is the current owner of a near 12 per cent holding in rival JD Sports Fashion.

‘Sports Direct wishes to explore options at an operational level to work together with Debenhams to create value in the interests of both Sports Direct's and Debenhams' shareholders,’ the company said in a statement declaring the shareholding.

‘This acquisition of shares has taken place without the prior knowledge of the Debenhams board of directors, but Sports Direct has communicated to Debenhams' board its desire to work together and its intention to be a supportive shareholder.’

Debenhams which has 240 stores in 29 countries. In the UK, where it has more than 150 stores, the chain has a top five market share in womenswear and menswear and a top 10 share in the market for childrenswear.

The department stores chain noted that Sports Direct intends to be a supportive shareholder and that it wishes to explore options at an operational level to work together.

‘Debenhams is open-minded with regard to exploring operational opportunities to improve its performance, alongside its own existing and planned initiatives, in order to create value for all Debenhams shareholders,’ the firm said in a statement.

Debenhams' shares which dropped 12 per cent in value following the profit warning on New Year's Eve, were up 5.6 per cent to 86.2p in early trade today, extending a rally by the mid cap stock on Friday.

‘The big rally in Debenhams on Friday looked surprising, but it is now clear that it was Sports Direct who were buying,’ said Nick Bubb, an independent retail analyst.

‘No doubt Mike Ashley has some ideas on how to trade from Debenhams’ surplus store space and he has some experience of making big space retailing work, via the infamous Lillywhites store in Piccadilly Circus. It also well known that he looked briefly at buying House of Fraser at the end of 2012. But dragging Debenhams downmarket and turning it into even more of a discount store may not appeal to retail purists,’ Bubb added.